Quick Takeaways
- Strategy says MSCI’s 50% bitcoin threshold would cause unstable index churn.
- Conflicting global accounting rules would make consistent application impossible.
- The firm warns that the rule contradicts U.S. policy aimed at expanding digital-asset adoption.
MSCI Proposal Faces Pushback
Strategy is urging MSCI to withdraw a proposal that would exclude companies holding digital assets worth over 50% of their total assets from major global equity benchmarks. The firm argues the threshold would cause frequent index “whiplash” as bitcoin price swings push firms above or below the limit.
Strategy’s 12-page letter says such volatility would trigger constant index changes, harming both investors and providers. It also argues MSCI is misclassifying bitcoin-treasury companies as investment funds rather than operating businesses.
Inconsistent Accounting Rules Add Complexity
The firm highlights a major technical flaw. Companies using IFRS can record bitcoin at cost, while U.S. GAAP requires fair-value marks each quarter. Strategy says this mismatch makes the 50% threshold impossible to apply evenly across jurisdictions.
Two companies with identical exposure could fall on opposite sides of MSCI’s test simply because they follow different accounting standards.
Clash With U.S. Pro-Innovation Crypto Agenda
Strategy also warns the measure could undermine active U.S. efforts to expand digital-asset adoption. The Trump administration has promoted initiatives such as the Strategic Bitcoin Reserve and wider 401(k) access to crypto assets.
According to the letter, barring bitcoin-reserve companies from MSCI’s core indexes would cut them off from roughly $15 trillion in passive capital, stifling innovation and contradicting U.S. policy goals.
Industry Concerns Mount as Decision Nears
MSCI launched its review in October after questioning whether bitcoin-treasury firms fit within its Global Investable Market Indexes. Strategy, the world’s largest corporate bitcoin holder with over 660,000 BTC, would be the most affected.
JPMorgan estimates say the Strategy could face around $2.8 billion in passive outflows if removed. That number could jump to $8.8 billion if rival index providers adopt the same threshold.
Other firms, including Strive, have echoed the concerns. They say the rule risks inconsistent treatment across borders and urged MSCI to consider optional “ex-digital-asset treasury” versions for clients who want them.
MSCI is expected to announce its final decision by Jan. 15 ahead of the February rebalancing. The crypto industry is watching closely, as the outcome could shape how institutional investors engage with bitcoin-heavy companies for years to come.